Are Alphabet, Apple, and Meta in trouble for violations of the Digital Markets Act of European Union? Read On

The Digital Markets Act of the European Commission mandates that popular social media platforms and websites monitor online material more vigorously and safeguard users while they purchase.

Published on Apr 01, 2024  |  12:14 PM IST |  21.7K
Image Courtesy: Wikimedia Commons
Image Courtesy: Wikimedia Commons

If it is established that Alphabet, Apple, and Meta utilized their dominating positions to impose unjust conditions on customers and restrict choices, they could face serious consequences for alleged violations of the Digital Markets Act (DMA) of the European Union. These businesses risk severe penalties equal to up to 10% of their worldwide revenue if it is determined that they violated the Act.

European Commission opens investigation into tech giants

The European Commission declared on Monday, March 25, that it had opened an investigation into the three major tech giants for possible partial non-compliance with their "gatekeeper" responsibilities under the recently implemented DMA. The investigations must be finished in a year. 

The European Commission is looking at the policies of Alphabet about self-preferencing on Google Search and steering in Google Play, the policies of Apple regarding steering in the App Store and the Safari browser's choice screen, and the "pay or consent model" of Meta for Facebook and Instagram. 

The commission believes that these companies' efforts to comply with the DMA do not effectively meet their obligations. The committee will also investigate how Apple has changed the costs for third-party app stores and how Amazon ranks products on its marketplace. The consequences of the European Commission's investigations for the major tech corporations and their customers are explained by Mint.

Six internet platforms that act as gatekeepers were alerted by the European Commission in September 2023 and were mandated to completely adhere to the DMA duties by March 7, 2024. Amazon, ByteDance (the company behind TikTok), Microsoft, and Alphabet were named gatekeepers in addition to Apple, Meta, and Alphabet.

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